Your First Employee: Everything You Need to Have in Place Before Day One

23rd October 2024

By Helen Scullion Assoc. CIPD  |  5 minute read

Key facts at a glance

  • Every employee in the UK is entitled to a written statement of employment particulars from day one. This is a legal requirement, not just good practice.
  • New employers must register with HMRC before the first payday and set up payroll for real-time reporting. Failure to do so can result in penalties.
  • Auto-enrolment for workplace pensions applies from the first day of employment for eligible employees, regardless of how many staff you have.
  • Getting the basics wrong at the start is significantly more expensive than getting them right from day one. Employment disputes in the first months of employment are common and avoidable.

Hiring Your First Employee in the UK: Key Steps to Success

Hiring your first employee is a significant milestone for your business. It signals that your company is growing and ready to handle increasing demands. However, this step can also feel daunting with the legal requirements and HR compliance considerations involved.

At Limelite HR, we understand how overwhelming this process can be, and we’re here to guide you through each step of hiring your first employee, ensuring you have the HR support and legal advice you need to make informed decisions and get it right the first time.

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How to Hire Your First Employee: A Step-by-Step Guide for UK Employers

Start by outlining exactly what you need in a new hire. This will help attract the right candidates and set clear expectations from the start.

  1. Advertise the Role
    You can advertise your role on UK job boards like Indeed, LinkedIn, or Job Centre Plus. Be sure to make your advert clear, inclusive, and compliant with UK employment laws and anti-discrimination legislation.
  2. Shortlist Potential Candidates
    Review CVs carefully, ensuring they align with your job description. Consider creating a candidate evaluation system to consistently assess applicants.
  3. Conduct Structured Interviews
    Ask all candidates the same questions to maintain fairness. You might want to include competency-based interview questions to better understand how they’d perform in the role.
  4. Make a Job Offer
    Once you’ve selected the best candidate, make a formal job offer. Ensure it includes all essential details like salary, start date, and any probationary period, in line with UK employment contracts.
  5. Register as an Employer and Set Up Payroll
    Before your new hire starts, you must register with HMRC and set up a payroll system. Make sure you’re prepared to manage PAYE and National Insurance contributions.
  6. Ensure Legal Compliance
    Don’t forget to conduct right-to-work checks, provide a written employment contract, and set up employers’ liability insurance.
  7. Prepare for Onboarding
    A strong onboarding process is crucial to help your new employee integrate smoothly into your business. This includes training, health and safety, and setting performance expectations.

Get Your Free Guide for New Employers

Hiring your first employee doesn’t have to be overwhelming. We’ve put together a comprehensive resource, “A Guide for New Employers,” that covers everything from writing job descriptions to managing payroll and ensuring legal compliance. Download the guide today and take the first step towards hiring your first employee with confidence. If you need further support, Limelite HR offers tailored HR solutions, including HR consulting, payroll setup, and employment law compliance services that can fit your needs and budget.

Ready to hire your first employee?

Download your free guide now or contact us at Limelite HR for expert advice, employee training and support, tailored to your business.

Download: A Guide for New Employers 

If you’re preparing to take on staff and want to make sure you’ve got everything in place, get in touch.

Book a free 30-minute discovery call

About the author

Helen Scullion Assoc. CIPD, HR Client Manager at Limelite HR & Learning. Helen supports organisations with day-to-day HR management, employee relations and practical people support. Connect on LinkedIn.

FAQS

  • What do I need to do before taking on my first employee?

    Before your first employee starts, you must register as an employer with HMRC, carry out a right to work check, provide a written contract of employment from day one, obtain employer’s liability insurance, and set up payroll. From April 2026, several rights also apply from day one, including statutory sick pay and paternity leave.

  • What HR policies must I have in place as a new employer?

    As a minimum, you need a disciplinary and grievance procedure that follows the ACAS Code of Practice, a sickness absence policy, a health and safety policy, and a data protection policy. Having these in place before your first employee starts protects you legally and creates a professional foundation for the working relationship.

  • Do I need employer's liability insurance from day one?

    Yes. Employer’s liability insurance is a legal requirement for virtually all employers with at least one employee. You must have a minimum of £5 million cover. Not having it in place carries a fine of £2,500 per day. Arrange it before your employee’s first day.

  • Can Limelite HR help new employers get the right foundations in place?

    Yes. We work with first-time employers to create employment contracts, HR policies and onboarding processes, and can advise on all the legal requirements you need to meet before your first hire starts. Get in touch to find out more.

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